10-QPeriod: Q1 FY2023

AMPHENOL CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2023

Filed April 28, 2023For Securities:APH

Summary

Amphenol Corporation reported modest revenue growth for the first quarter of 2023, with net sales increasing by 1% year-over-year to $2.97 billion. This growth was driven by strong performance in the Harsh Environment Solutions and Interconnect and Sensor Systems segments, which offset a decline in the Communications Solutions segment. The company also saw positive organic sales growth of 1%, indicating underlying business strength despite a challenging market environment. Diluted Earnings Per Share (EPS) improved to $0.71 from $0.68 in the prior year period, reflecting effective cost management and operational leverage. Operationally, Amphenol demonstrated solid profitability with an operating margin of 19.9%, supported by ongoing pricing actions. The company generated strong operating cash flow of $532.4 million, enabling robust investment in capital expenditures ($97.7 million) and acquisitions ($113.2 million for one acquisition). Despite an increase in interest expense due to rising rates, Amphenol maintained a healthy balance sheet and sufficient liquidity to fund its operations, return capital to shareholders through dividends and share repurchases, and pursue strategic growth initiatives.

Financial Highlights

53 data points
Beta

Revenue

$2.97B

31.7% Gross Margin

Net Income

$439.20M

14.8% Net Margin

EPS (Diluted)

$0.35

Total Assets

$15.38B

Cash & Equivalents

$1.39B

Free Cash Flow

$434.70M

Financial Statements
Beta
Revenue$2.97B
Cost of Revenue$2.03B
Gross Profit$943.40M
SG&A Expenses$346.30M
Operating Income$591.70M
Interest Expense$35.90M
Net Income$439.20M
EPS (Basic)$0.37
EPS (Diluted)$0.35
Shares Outstanding (Basic)1.19B
Shares Outstanding (Diluted)1.24B

Key Highlights

  • 1Net sales increased 1% to $2.97 billion for Q1 2023 compared to Q1 2022.
  • 2Diluted EPS rose to $0.71 from $0.68 in the prior year.
  • 3Harsh Environment Solutions and Interconnect and Sensor Systems segments showed strong growth, while Communications Solutions saw a decline.
  • 4Operating income was $591.7 million, with an operating margin of 19.9%.
  • 5Operating cash flow was robust at $532.4 million.
  • 6The company completed one acquisition for $113.2 million during the quarter.
  • 7Increased interest expense was noted due to rising interest rates, impacting commercial paper borrowings.

Frequently Asked Questions

Amphenol reported net sales of $2.97 billion for the first quarter of 2023, representing a 1% increase compared to the same period in 2022. This growth was 3% in constant currencies and 1% organically.

The company reported operating income of $591.7 million, resulting in an operating margin of 19.9%. Diluted Earnings Per Share (EPS) improved to $0.71 from $0.68 in the prior year quarter.

The Harsh Environment Solutions segment saw a 17% increase in net sales, and the Interconnect and Sensor Systems segment grew by 10%. However, the Communications Solutions segment experienced a 15% decrease in net sales.

Amphenol generated strong operating cash flow of $532.4 million in the first quarter. The company used $113.2 million for an acquisition and $97.7 million in capital expenditures. It also returned capital to shareholders through dividends and share repurchases, maintaining adequate liquidity for its operations and future investments.